Majority of Americans would consider financial products from a tech company instead of a bank or credit union

Santa Clara, CA, Mar 03, 2020 -- Ondot Systems, the digital card services platform for credit and debit issuers, today released findings from a study it commissioned from The Harris Poll about consumer attitudes toward Big Tech and financial services products. A majority of Americans, 64 percent, would consider purchasing or applying for financial products from a tech company instead of a traditional financial services provider. Among those ages 18 to 34, this figure skyrockets to 81 percent, and Americans ages 35 to 44 are close behind at 79 percent.

The survey also provides a warning to smaller financial institutions: Nearly three quarters, 72 percent, of Americans agree that tech companies, such as Google, Apple, Amazon and Facebook, entering financial services would threaten the existence of smaller banks and credit unions.

“Smaller financial institutions need to close the technology gap with large technology companies or many of their customers could be tempted to leave,” said Vaduvur Bharghavan, CEO of Ondot Systems. “Americans – especially younger ones – are receptive to new financial services offerings from technology companies, and smaller banks and credit unions are especially vulnerable.”

The survey found that a majority of Americans (64 percent) believe if technology companies competed head-to-head with traditional financial services providers, financial products would improve. Those between the ages of 18 and 44 would consider purchasing or applying for a financial product from a tech company because they provide products that are more convenient to use (35 percent), have tools to make it easier to stay on top of budget/spending (30%) and better technology/digital features (28%).

“Technology companies have spent years and billions of dollars designing customer-centric platforms that deliver an easy user experience, Apple Card’s instant issuance feature being a recent example,” said Bharghavan. “As a result, consumers have incredibly high expectations of the companies with which they do business, including financial institutions.”

Despite a willingness to try financial services offered by technology companies, many Americans still indicate skepticism with how their personal information might be used. Seventy-four percent of Americans agree that tech companies are more likely to sell an individual’s personal financial data than traditional financial services providers like banks and credit unions.

Survey Methodology:
The survey was conducted online within the United States by The Harris Poll on behalf of Ondot Systems from Jan. 28-30, 2020, among 2,010 U.S. adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact media@ondotsystems.com.

About Ondot
Founded in 2011, Ondot provides over 4,500 banks and credit unions with a digital card services platform that establishes the new standard for cardholder engagement – from an integrated Card App for community issuers to premium journeys for global top banks. Ondot enables card issuers to offer in-the-moment convenience with control and transparency to their physical and virtual cards, leading to increased engagement and lifetime value. To learn more about Ondot Systems, visit www.ondotsystems.com.